Share

JSE ticks up after weak spell

Johannesburg - South African stocks rose on Monday, tracking global markets after the central bank stepped in to bail out troubled African Bank Investments [JSE:ABL] from a flood of bad debts.

South African stocks suffered last week as African Bank, or Abil as the bank is widely know, plunged after it warned of a full-year loss and said it would need a massive capital increase to shore up its balance sheet.

The news sparked a shareholder exodus that wiped more than $900m from Abil's market value in three days.

The central bank and commercial banks stepped in on Sunday with a $1.6bn plan to rescue Abil.

Abil shares and debt were suspended immediately on the Johannesburg bourse, and the company is applying to have trade suspended on foreign exchanges.

The Top-40 blue-chip index was up 1.79% to 46 377 points while the broader All-Share index rose 1.68% to 51 523. The banking index was up 1.65%.

"We had been sold off unnecessarily last week. The decline was overdone. I'm not surprised at the market running so much - we are just making up lost ground," said Owen Nkomo, executive partner at Inkunzi Investments.

Among the top gainers were mining firms such as base metal producer Assore, which rose 5% to R353.00 and diversified mining group African Rainbow Minerals, gaining 4% to R195.69.

Trade was thin with about 140 million shares changing hands compared with last year's daily average of 175 million shares. Advancers outpaced decliners 218 to 88 while 51 issues were unchanged, according to preliminary bourse data.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders